Get documents about "Is it finally time to get passionate about Colombia COLOMBIA'S
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Monday, May 21, 2007
INSIDE
COLOMBIA’S NEW CONFIDENCE
BUILDING
BOOM
SIGNALS A
BRIGHTER
FUTURE
PAGE 4
TRANSPORT
QUICKER,
CHEAPER, SAFER,
COLOMBIA IS
BECOMING A
BETTER PLACE TO
DO BUSINESS
PAGE 5
CUMBIA: A Cartagena woman performing the “Cumbia”, a folk dance native to Colombia. Photo: Jay Scott
Colombia
in Figures Is it finally time to get passionate
about Colombia?
Bad reputations This mismatch between known) come to a chicken diverse and often stunningly near 800 in 2005, with the
are easy to come by, perception and reality was is when it is served up on beautiful country populated by trend expected to continue
but they can be much borne out in the recent a plate in one of the city’s well-educated, hardworking, downward.
harder to shake off – Hollywood movie, Mr. and excellent restaurants. often well-traveled and open- Gun crime has fallen
even when the reality Mrs. Smith, in which Brad Just how Colombia can minded citizens, whose other so dramatically that Bogotá
has moved on. Pitt and Angelina Jolie meet move on from that old, qualities might be described now has a lower homicide
in a shabby hotel lobby, negative stereotype is a as ‘entrepreneurial’, ‘fun- rate than Washington DC.
That is certainly the sweat beading their brows, challenge being faced by loving’ and, above all, Elsewhere in the country,
case with Colombia. and chickens scurrying Luis Guillermo Plata. He is ‘resilient’. security for road travel has
If you looked at just around the streets outside. president of the country’s These are the qualities drastically improved, with a
about any opinion poll on The subtitle reads “Bogotá, investment promotion agency valued by the ‘New Co- greater police and military
CAPITAL: Colombia, it would probably Colombia.” Proexport, which is investing lombia’ which have, in presence enabling night
Bogotá yield the same depressing When the film was first heavily in a worldwide Proexport’s campaign, been travel on many highways.
LOCATION: pattern of negative asso- released in Colombia, most campaign called Colombia distilled down to a single Most of these im-
Northern South America ciations. Drugs, cartels, viewers didn’t know whether es Pasión, the heart- word, ‘Pasión’, to encompass provements have occurred
guerrillas, paramilitaries, to laugh or cry. For one thing, shaped logo of which now Colombians’ passion for within the last four years,
AREA:
gun crime, kidnappings ... why all that studio-induced adorns billboards, company life, for doing business, for since President Alvaro Uribe
1,138,910 (sq km)
And while nobody would sweat? The audience knew letterheads, clothing labels, achieving excellence in their launched his campaign to
493,733 (sq mi)
suggest that these problems that, standing 2,600 meters bags of coffee, trade shows, chosen field. build “Democratic Security”
POPULATION: never existed in Colombia above sea level, Bogotá is and even the tails of Avianca That may be how across the country. By this
43,593,035 – nor, indeed, that the higher than most ski resorts airplanes. modern Colombians see he means “not security
LANGUAGE: country’s struggle with and its weather generally What this seeks to themselves. But how do alone, but to restore the
Spanish them is over – they belong mild-to-brisk. Moreover, it project abroad is nothing you convince skeptical freedom that we had lost
to the past. Nowadays is a modern city, sophistica- more than what the outsiders? Well, some of because of terrorism.”
CURRENCY:
most Colombians talk of ted and fashion-conscious, majority of Colombians see the key facts are as follows.
Colombian Peso (COP)
them in terms of history, the closest most ‘Rolos’ as the reality surrounding Kidnappings dropped from *TURN TO COLOMBIA,
INDUSTRIES: ‘the bad times’. (as Bogotá’s residents are them – a geographically 2,882 incidents in 2002 to PAGE 2
Textiles, food processing,
oil, clothing and footwear,
beverages, chemicals, BUSINESS
FTA opens the way for
cement, gold, coal, and
emeralds
GDP purchasing
power parity:
$366.7 billion (2006 est.)
more business between
GDP real growth
rate:
Colombia and the US
5.4% (2006 est.) With its central
GDP per capita location and many
(PPP): ports, Colombia is
$8,400 (2006 est.) the perfect business
conduit for the North
EXPORTS: and the South.
$24.86 billion f.o.b.
(2006 est.) Colombia’s strategic
EXPORT PARTNERS: geographic position at the
United States, Venezuela, juncture of the Central
Ecuador American isthmus and the
great landmass of South
America, with important
Source: CIA World Factbook CARTAGENA: The Colombian flag flies over the historic Photo: Proexport
seaports on both Pacific
and Caribbean coastlines, port town of Cartagena.
Upgrading the ports
makes it ideally situated
to facilitate between North
and South. Understandably,
Editorial Director: it is often described as
Jay Scott the ‘Gateway to South The Colombian government is rather than providing international
Production: America’. seeking a rapid expansion and transhipment or logistics services.
Tannaz Etebarian
Now, with the coming of upgrade of existing port facilities. Competition within the region is
the Free Trade Agreement fierce, with neighboring Panama
Colombia’s main seaports cover a
Design: (FTA) between Colombia broad range of trade facilities, though
having an enormous advantage in its
Miche Ratto and the United States, canal and associated infrastructure.
for the time being these are mainly
BOGOTÁ: The Downtown Photo: Tannaz
of Colombia’s capital. Etebarian focused on servicing the country’s
info@latin-invest.com *TURN TO FTA, PAGE 3 import and export requirements *TURN TO PORTS, PAGE 6
Page 2
part of his Democratic on from thinking merely
Security. “Our objective in about survival to building
the social area,” he says, “is for themselves a better
to reduce levels of poverty life within a secure and
to 35 per cent during my democratic environment.
second term – down from When asked about
51 per cent last year, and Colombia’s ‘image problem’,
nearly 60 per cent four President Uribe replied:
years ago. And by the time “I don’t agree with the
Colombia celebrates the idea of creating an image
200th anniversary of its different from the reality.
independence in 2019, we What we want to create in
want to bring it down to 15 Colombia is a country with
per cent.” real merits which will build
Behind this lies the confidence.
thinking that only by “So if someone
achieving economic and from the international
social improvements can community asks you about
security gains be made the security situation in
to last. For while Presi- Colombia, please give this
dent Uribe’s Democratic answer: ‘Yes, Colombia
Security incorporates Plan has some problems with
Colombia, the US-backed security and illicit drugs;
war on drug-trafficking, it but Colombia is improving,
recognizes this is only a has the determination,
part of the solution. and is on the right path to
President Uribe is overcome them.’
therefore careful to connect “The best way to
successes in security improve Colombia’s image,”
and the war on drugs to he argues, “is not by hiding
improvements in the lives our problems. Instead, it
of ordinary Colombians. is by transmitting to the
He has declared 2007 the international community
HARMONY: Modern and historic buildings stand side by side in Bogotá’s financial district. Photo: Tannaz Etebarian “Year of Life,” to show how our determination to fight
Colombians have moved these problems.”
*COLOMBIA, FROM FRONT in a stranglehold. How was first Colombian president incentives to encourage
PAGE a new government going to be re-elected in over a capital investment. Having
to change that? century. already achieved GDP
The goal is to build But President Uribe’s He is aware that there growth above 5 per cent,
political and social stability team was willing to is still much to do. The President Uribe says, “We
that is sustainable over learn lessons from past security umbrella needs need to stabilize at that
the long term, which, failures, adopting instead to be further strengthened level and move forward to 6
President Uribe says, a gradualist strategy of and extended across the per cent,” adding, “for this
must include “broader loosening the fingers one- country. “Determination,” to happen requires more
goals such as reducing po- by-one, bringing physical he says, “is the best investor confidence.”
verty, increasing economic security and the possibility way for my country at That is finally begi-
growth to generate more of participating in the this moment, no matter nning to happen. The
jobs, and above all creating democratic process to one what risk it involves. ratings agency Standard
greater confidence in city or region after another. The more the internatio- & Poor’s upgraded Colom-
Colombia.” So gradual was this nal community sees our bia’s economic prospects
That may seem a tall turnaround that many determination to combat from ‘stable’ to ‘positive’
order, especially since outside of Colombia did terrorism, the more it will last year, while Moody’s
just five years ago establi- not notice what was going trust Colombia.” upgraded its currency
shing security nationwide on. Within the country, Confidence of inter- rating from ‘negative’ to
seemed an impossible however, the success of national investors is ‘stable’.
task. President Uribe’s policy also crucial for further The President is
For decades the drug- of Democratic Security economic growth, and the convinced that, along with
traffickers, criminal cartels, was widely recognized by government has recently greater prosperity and
and left-wing guerillas had voters who returned him pushed through legal competitiveness, social de-
held much of the country for a second term – the reforms and introduced velopment is a necessary
Empresa de
Energía de Bogotá
The Power to Make Things Happen
Empresa de Energía de in the future could be built though this is a sector
Bogotá (EEB) is a leader between countries in the where we do not see a
in the energy sector in region, such as Venezuela. lot of opportunities for
EEB is also expanding growth.”
Colombia.
its original core business But electricity
With the acquisition of of electricity transmi- transmission forms are only
strategic stakeholdings and ssion across neighboring one part of EEB’s domestic
building interconnecting its countries: it is currently energy portfolio. Its other
network with neighboring building an interconnection key activities in Colombia’s
countries, it has also become line, linking Colombia and energy industry are
a leader in the region as a Ecuador. Besides which, EEB through its majority 51.5
whole. is already a major player in per cent holding Emgesa
EEB’s latest acquisition, electricity transmission in – the second largest
the Colombian gas com- neighboring Peru, where it electricity generator in
pany TGI, took place last has a 40 per cent holding the country – while it also
December. This has greatly in Red de Energía del Perú holds a further 51.5 per
extended EEB’s presence (REP), the country’s largest cent stake in CODENSA,
in gas transportation since energy transport company the largest electricity sales
TGI’s 3,600 kilometer to which it added in early and distribution company
pipeline network makes it in Colombia serving nearly
Colombia’s leading natural 2.1 million customers in
gas transporting company, and around Bogotá.
both in terms of volume and Through its dynamic
length of network. acquisition strategy, EEB is
The TGI deal comes now one of Colombia’s most
on top of earlier moves important companies in the
into the natural gas sector, country, a leader in both
firstly a 25 per cent holding electricity and natural gas,
in the distribution utility with total assets nearing
Gas Natural and then, in the US$4 billion mark. It
June 2005, the acquisition can be seen as another
of a 72 per cent stake in example of Colombian
Transcogas – the utility businesses acquiring a
company which, through its dominant position in the
own 128-kilometer network, region, using their local
takes care of 100 per cent of success to expand outside
natural gas transport for the their borders and bring the
towns around Bogotá, and benefits of their service to
75 per cent within the capital EEB: General Manager, new markets.
itself. Astrid Martínez. Its shareholders
“The TGI acquisition,” have benefited from the
says EEB’s General Mana- 2006 a 40 per cent stake company’s investment in
ger Astrid Martínez Ortiz, in Transmantaro’s smaller natural gas in terms of
“allowed us to modify network. value, yield, and liquidity.
the combined company’s Within Colombia, EEB “As an investment,”
capital structure, thereby is a leader in electricity says Martínez, “it is of
reducing the cost of capital transmission through its low financial risk and
and improving our financial 692-kilometer network of high strategic value, for
structure.” Moreover, she 230-kilowatt power lines. it complements EEB’s
is confident that “natural As Martínez explains: activities in the electricity
gas in Colombia has great “Our main transmission sector and provides a solid
possibilities, both through activities in Colombia base for expansion.”
the dynamic increase in are the maintenance of
domestic consumption, and existing power lines and the
through cross-border in- construction of new ones.
terconnections such as the We bid for all government
export/import pipelines that contracts to build new lines,
Page 3
*FTA, FROM FRONT PAGE are mainly right-of-center “for example, in energy, offered investors substantial are forging ahead with new other agro-business, could be
and pro-business, that he where more than 80 per gains, especially in SMEs. programs to make Colombia readily transferred into export
volumes of internatio- continues to express his cent of our territory has not And the many new techno- a more competitive business opportunities. Other sectors
nal trade are expected to determination to crack down been properly explored and logy companies growing up environment and, crucially, to fitting this profile included
increase significantly. And on drug-trafficking and far greater resources are in Bogotá and elsewhere make it easier to invest there. light manufacturing, medical
while the US is undoubtedly improve internal security needed in order to increase are mobilizing the natural “We have to support in a equipment, electronics, and
the most important export through his ongoing campaign oil exploration. Similarly, aptitude and intelligence of a more efficient way companies service industries requiring
market for Colombian goods for Democratic Security. But further investment is needed new generation of Colombians that are here,” says María high skills levels.
and services, the FTA is for Colombians themselves, in agriculture to develop bio- to develop software or provide Fernanda Campo Saavedra, The third conclusion was
only part of the expanding possibly the greatest tangible mass energy since Colombia call centers and other add-on of the Chamber of Commerce, that there are dichotomies
network of international trade benefit of enhanced security offers excellent opportunities technology-related services. “in order for them to be more in the perceptions investors
agreements that will give and stability is the way in to produce bio-fuels such as Further investment in competitive during this period have of Bogotá depending
added impetus to an economy
on whether they are based
already growing at nearly 7
per cent a year. “Colombia’s fast-growing economy saw GDP in the city or have never
visited. There are amazing
President Alvaro Uribe’s
government has entered increase by nearly 6 per cent last year.” success stories like IBM, who
centralized all its call-center
into a number of free trade
accords, most recently with which it has fed through into ethanol and bio-diesel.” telecoms infrastructure is of globalization.” operations for Latin America
Chile and Peru, to be followed business confidence. Agriculture Minister still necessary. Noting that Besides which, the and sell thousands of dollars’
by agreements with three Colombia’s fast-growing Andrés Felipe Arias Leiva Colombia has a low level Chamber of Commerce and worth of business across the
Central American countries, economy saw GDP increase argues, “With the FTA and of Internet broadband agencies such as Bogotá region. Siemens engineering
namely Honduras, Salvador, by nearly 6 per cent last year. more open markets we must penetration and a restricted Región Dinámica are seeking is at the same level in
and Guatemala. But, as For 2007 the expectations focus production on high- range of telecoms products to improve the capital city’s Bogotá as its operations in
President Uribe points out: are that it will continue value export sectors. and services, President ‘platform’ of infrastructure North America and Europe.
“We are also in conversations growing past the 7 per cent “We are going to Uribe points to the huge and business services: “If we Investors who are here like
with the European Union mark. Moreover, this has implement a program of investment opportunities in have a better connectivity,” the place and are asking for
and with the four countries been achieved against a fresh resources for agriculture these industries. Improved says Saavedra, “better le- more budget to increase their
of the Andean Community background of falling price worth US$200 million, or communications, both elec- vels of education, more operations.
– Ecuador, Bolivia, Peru, and inflation, down again last year almost double the previous tronic and transportation, innovation, more research, Inward investment pro-
Colombia.” to just 4.5 per cent. budget, to support both are recognized as central to then we will become that cedures have been greatly
For many Colombian International ratings those sectors that have to Colombia’s ongoing economic much more competitive. To simplified. “Two years ago,”
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businessmen the FTA re- agencies have upgraded compete with imports from development. achieve this we are both says Saavedra, “we developed
presents far more than just Colombian creditworthiness, the US,” he says, “and to For precisely which supporting companies at an important project to speed
a commercial opportunity. and leading multinationals enhance productivity and reasons INVIAS, the go- the micro level and seeking up the process of creating
Rather, it is a show of like Johnson & Johnson, competitiveness especially vernment agency that further improvements in the a company in Colombia.
confidence in Colombia by Colgate Palmolive and Pfizer for those sectors that have manages the country’s road city’s platform.” Previously it required 17
the US, a clear recognition of are investing and positioning greatest export potential such infrastructure, is upgrading Dr. Virgilio Barco Isakson different procedures involving
the strategic nature of their themselves for further growth. as fruit, flowers, beef, dairy, major trade routes and of Bogotá Región Dinámica 10 different entities, all of
bilateral relationship. And Another indicator of the tobacco, forestry, rubber and offering attractive concessions points to research on the which took around 60 days.
given the increasing number attractiveness of Colombia to palm products, cocoa, and to local and international city’s – and, more generally, Now we have simplified it to
of left-leaning countries in investors was the acquisition fisheries.” bidders. At the same time, Colombia’s – comparative just two steps, with everything
the region – and particularly of the country’s main brewery, Other fast-expanding seaports such as Cartagena advantages. “One thing done here at the Chamber
the strong anti-US stance Bavaria, by the international sectors where new and Buenaventura are going that really stood out,” he with the DIAN (Agency of
adopted by Venezuelan brewing giant SABMiller. investment opportunities are ahead with major expansion says, “was the availability of National Tax Recollection),
president Hugo Chávez – it Indeed, the breadth of arising include tourism, and plans so as to handle greater highly qualified labor that is and it takes just two-and-a-
is likely that Washington will investment opportunities, ran- especially ‘health tourism’, volumes of commercial and very service-oriented, very half days.
value Colombia’s friendship ging from natural resources as well as new real-estate tourist traffic. At Bogotá’s committed, and well-trained. Many things are changing
and support even more in to software programming, is developments being built international airport, El The research also pointed in Colombia and so fast that,
future. as exceptional as Colombia’s mainly for the returning Dorado, a huge expansion toward a need to specialize if potential investors want to
In building this re- varied landscapes. Colombian diaspora. In recent and upgrade of facilities is in sectors where opportunities get in on the ground floor,
lationship it certainly helps “They exist in many years, Colombia’s dynamic under way. to serve local or regional they should go and look for
that President Uribe’s policies sectors,” says President Uribe, financial markets have Investor support agencies markets, such as flowers and themselves soon.
Dramatic Changes to
previously did not exist ces with specially-designed “Who would have
except among the elite. life insurance products thought,” he asks, “just
Now the middle class has going out to middle- and 15 years ago that we’d
the Financial Landscape
begun to invest in capital low-income strata,” says be selling insurance
markets.” Dr. Jorge Enrique de Jesús to low-income families
Another growth area Uribe Montaño, President in Colombia? But as
is insurance. Whereas of Seguros Bolívar, the income per capita
Colombia’s investment seek investment advice or coming. We hope to move previously the vast majority best capitalized of the ‘Big starts to increase, more
laws have generated a portfolio management. But from the 40 firms that of Colombians did not Five’ insurance groups people are able to buy
savings culture. many of these smaller, more exist to less than 20, either bother with insurance, which control almost 50 insurance.” However,
specialized institutions were through mergers between either through lack of per cent of Colombia’s fast- reaching them, he points
As in most other emer- under-capitalized, leaving domestic players or the big access or lack of knowledge growing market. While it out, requires investment
ging markets, Colombia’s them vulnerable to any international investment of the products available, has strategic alliances with in distribution channels,
financial institutions were hit global downturn. banks like Merrill Lynch or nowadays the big insurance multinationals like AXA and and advertising: “You
hard by the Asian financial “Now we have moved Morgan Stanley.” companies are reaching a Zurich, Seguros Bolívar have to go directly to the
crisis of the late 1990s, more towards a system That is not to say growing market through believes being “100 per cent client,” he says, “so in
and the period since 1999 of universal banks that that specialist houses are focused sales campaigns. Colombian” gives it an edge future the Internet could
has been characterized by offer a complete range of extinct. Colombia’s stock “Now we have sales for- in reaching new markets. become a great tool.”
dramatic structural changes services,” says Dr. Cecilia. market has been growing
in the sector. “There has also been an rapidly (in 2005 it was the
Recent years have seen influx of international banks, second fastest-growing
consolidation right across with CitiGroup, BBVA, national index in the world,
the sector, with smaller Banco Santander, Lloyds, after India’s), and the very
service providers being Banistmo, and others either dynamism of activities in
taken over by larger entities buying into or expanding both primary and secondary
– local players intent on their presence in Colombia.” markets means there are
gaining market share or The result is a narrower plenty of opportunities for
big multinationals seeking pool of providers offering a local players capable of
to build up their Latin broader range of services. competing with the biggest
American network while at The concept of the one- of international banks.
the same time gaining direct stop-shop is now an One of the largest
access to Colombia’s growth accepted model and banks Colombian financial houses
potential. pride themselves on both is Alianza Valores, with
“The banking system diversity and integration. assets of around $US500
in Colombia has changed Dr. Cecilia believes million under administration.
enormously,” says Dr. that this consolidation will As well as providing the
Gloria Cecilia, President of soon extend to capital usual bond and foreign-
Alianza Valores. “Previously markets. That process has exchange trading and
the system was far more already begun. Whereas settlement services, Alianza
segmented, with specialized previously there were three Valores prides itself on its
financial vehicles offering independent stock markets intimate knowledge of the
limited ranges of services. in Bogotá, Cali and Medellín, country’s stock market and
We had mortgage banks, these merged in 2001 to its distribution capacity,
commercial banks, and create in La Bolsa de Valores having invested recently in
financial corporations fo- de Colombia a single, unified expanding its network to
cused on providing just one securities market. cover all the main centers
type of service.” “But we also need of economic activity from
So Colombians would to consolidate on the Barranquilla to Medellín.
go to one institution to take brokerage side,” says Dr. “Changes in Colombia’s
out their mortgage, another Cecilia, “because at present investment laws have ge-
to manage their personal there are many firms that nerated a savings culture,”
finances, and yet another to are too small for what is says Dr. Cecilia, “which
Page 4
Building Boom Signals
a Brighter Future
Real-estate has a portfolio of major incredibly well, and our
development and companies covering most recognition that we have a
construction are areas of expertise. The social responsibility – to our
bouncing back in development company clients, to our investors, and
Colombia. AMARILO (known as In- to the partners we use – to
mobiliaria Mazuera prior complete any project to the
Increased demand for to its re-branding in 2004) highest architectural and
housing combined with covers a broad range of construction standards.”
greater availability of housing needs: “We have Moreover, these major
real-estate-linked credit a very successful project players have enjoyed suc-
financing has resulted in in Cali,” says AMARILO’s cess because they have
the construction sector president, Dr. Camilo been amongst the first
growing by around 16 Congote Hernández, “which to recognize a relatively
per cent last year. That is medium-income housing. new phenomenon – the
represents nearly three But we are also involved in growing flow of Colombians
times the country’s overall low-income housing, and living abroad who now
economic growth rate of here we are talking about wish to either return home
5.7 per cent. just US$40,000 per unit. permanently or to invest
This startling increase “We are also planning in a holiday home back in
demonstrates a growing to expand in Barranquilla, Colombia.
confidence amongst pro- Santa Marta, and Cartagena, “We send our co-
perty buyers and investors where we are going to mmercial managers to
– a direct result of the construct housing to meet property fairs in Miami
improvements in security. demand arising from new and Madrid,” says Arango,
The ‘bad old days’ people – including Chinese “where we pitch our
when major real-estate companies – coming in to projects specifically to
developments were aban- take advantage of the Free Colombians living abroad.
doned and left unfinished Trade Agreement (FTA) But the interest is coming
are, it would seem, at an with the United States.” not just from the Colombian
end. And the results of But the remarkable diaspora these days. We
the subsequent boom are shift in Colombia’s real- already have agreements
there for all to see in the estate market stems with Chilean investors, ARCHITECTURAL MARVEL: The intelligent Photo: Mei Schwein
rapidly changing silhouette directly from the improved we’ve had visits from building of the Public Companies of Medellín.
of Cartagena’s new town perceptions of security. Spanish investors and,
as new luxury apartment “The biggest demonstration more recently, increasing is accelerating is also cement group,” says close to the customer
towers spring up into of that change,” says interest from the Arab clearly reflected in the its president, José Al- allows for integrating the
the Caribbean sky. But Dr. Hernández, “is that world.” rapid demand for building berto Vélez, “and with business from cement
it’s not just in fashiona- now we are working on This is a good ba- materials. Last year, 18 companies in Panama, production to final sales.
ble coastal Cartagena developments in Villa- rometer of the changing per cent of the country’s Haiti and the Dominican “Last year we exported
that developments are vicencio, an area where perception the outside road cargo was cement Republic. We also 2.5 million tons of cement
booming. Across the people were being kid- world has of Colombia. It is produced by just one have a cement plant in to the United States,
country, new homes are napped eight years ago.” increasingly seen as a place provider – Cementos Venezuela. Recently we equivalent to 8 per cent
rapidly appearing as real- What developers such with improving security Argos. established a presence of all cement imports.”
estate developers focus on as Ospinas are able to conditions and its capi- Cementos Argos be- in the US market through So, while Vélez
the most promising market offer are standards of tal appreciation is viewed gan as a local operator the acquisition of three is happy to see the
segments, namely domes- quality and desirable with confidence. “Foreign and is now not merely the important ready-mix Colombian market grow-
tic second-home buyers locations that appeal to investors see greater growth largest provider in the companies in Texas, North ing, he is particularly
and cash-rich Colombian the middle-income market. opportunities here than at local Colombian cement Carolina, and Georgia. proud that Cemen-tos
diaspora home-comers. “What sets us apart from home. They are starting industry but has expanded “More than half of our Argos has “taken the
The real-estate industry our competitors,” says to believe in our country to become a player on the income now comes from opportunities to inter-
has already been through Ospinas’s president Andrés again,” adds Arango. international stage. the United States,” he nationalize the company
a phase of consolidation, Arango, “is our 75-year The fact that Colom- “We have joint adds, noting that having and become a truly global
and today the country track record of doing things bia’s construction industry ventures with a Swiss ready-mix businesses player.”
TELECOMS
Colombia
Telecoms
Leaps Ahead
This new, more fully associated value-added The new, more
integrated company services, on top of fully integrated
has been growing the company’s pro- company has been
profits since 2003. vision of general growing profits
telecoms services since 2003, and is
President Alvaro in 21 departmental now providing TV
Uribe’s government capitals and 930 as well as telepho-
is pushing ahead with municipalities around ny services. And
a profound trans- the country. it is working with
formation of the “We are going to Telefónica’s mobile
telecoms sector. Old compete throughout operation Movistar, to
monopolies have been the country,” says provide competition
swept aside, opening Gómez, “and have in the fast-growing
the way to greater taken the decision to mobile market.
competition and, in enter the key market Looking ahead to
the process, creating of Bogotá and other the development of
favorable conditions major cities such as WiMAX technology
for foreign investment Cali. We are inves- and VOIP, Gómez
in Colombia. ting in infrastructure sees a bright future
C o l o m b i a and constructing a with further gro-
Te l e c o m u n i c a c i o n e s broadband platform wth and investment
was born out of for more than 37 opportunities in
the wholesale res- municipalities. Colombia.
tructuring of the
telecoms industry
and is now a leading
provider of mul-
tiple services. The
company has entered
into a strategic
alliance with Spain’s
Telefónica, enabling
a major recapitali-
zation opportunity
with new invest-
ment into Colombia
Te l e c o m u n i c a c i o n e s
estimated at US $670
million between 2006
and 2007.
Alfonso Gómez,
President of Colombia
Telecomunicaciones,
is confident that this
investment will be
recouped with the
increasing penetration
of broadband and
Page 5
Tourists to Colombia Have Something to Smile About
Some 30 Colombia- and quality of medical United States. growing percentage of standards; and an operations per capita in
based clinics were treatments now available “Medical care in patients are coming from opportunity to escape the world. It was also the
represented at an in private clinics only Colombia is approximately abroad, with agencies to pleasant countryside birthplace of last year’s
event held late last three hours’ flight away, a quarter of what it costs in the US and Europe to recuperate. Patients ‘Crossed Legs Strike’, a
year in Miami called and also of the substantial in the US,” says Eduardo organizing surgery pack- frequently choose to build decision by the girlfriends
the ‘Expo Salud’. cost savings compared Vargas Martínez, president age trips to Colombia a vacation around their of gang members and
This event raised to having the same of the Medellín-based where local hotels stress transformation – returning paramilitaries to deny
awareness of the breadth procedures done in the Clínica Las Américas. Last their proximity to clinics home without bruises or sexual favors to their
year, this private clinic and recovery-enhancing dressings, and with a new partners until they agreed
alone treated more than environments. lease of life or quality of to give up their guns.
480 foreign patients, 65 In order to realize the health. How effective this
per cent of whom came potential in this sector, Cosmetic surgery has campaign will be in the
from the US. prospective patients need long been a specialism of long term remains to be
Many of these were to be reassured as to Colombian clinics. In fact, seen. But in terms of
Colombians or Latin Ame- quality of services – highly a small town in Colombia’s promoting Peace rather
ricans living in the US who trained and experienced coffee region, Pereira, than Power, it certainly
are ‘in the know’ about doctors; modern and holds the title of having undermines Mao’s dictum
some of the world-class sophisticated clinics oper- the highest percentage of what comes out of the
clinical procedures now ating to international of cosmetic surgery barrel of a gun.
available: “Many come
for their annual medical
check-up,” says Martínez,
“corporate check-ups,
dentistry, or gynecology
not covered by their
insurance.
“And since the image
of Colombia abroad has
improved, more Americans
are starting to come
here.” Many come for
oncology – for a second
opinion or for oncology
surgery as the Cancer
Research Institute at Las
Américas is the largest
and most comprehensive
in Medellín – or for
general surgery. Other
procedures in demand
include elective cosmetic
surgeries, transplants (the
clinic is unique in doing
larynx transplants), and
neurology.
The cost savings can
be substantial. Breast
implants in clinics around
the US can cost in the
region of $10,000, while
the same operation
goes for just $3,000 in
Colombia’s finest sur-
ENCHANTING: Cartagena is a Photo: Tannaz Etebarian geries. Unsurprisingly, a
mix of magic and romance.
Quicker, Cheaper, Safer, Colombia is
Becoming a Better Place to do Business
Few would dispute Suarez Vallejo. “We also have
that an efficient and alliances in Venezuela and
cost-effective transport Ecuador for deliveries there,
system is essential and a point of sale in Miami
for any country to be where packages are received.
competitive in today’s We plan to expand further in
increasingly globalized the US market and are now
markets. targeting New York.”
Vallejo sees the Free
Yet, until very recently, Trade Agreement (FTA) with
Colombian delivery services the United States opening
and freight operators were enormous opportunities. “We
unable to utilize even existing have to become a more global
road infrastructure efficiently company,” he says. “The
because most major highways other challenge is integrating
were closed at night for our logistics chain processes
security reasons. to provide complimentary
Nowadays, that situation services to our clients. So
has changed in many parts of we are introducing a new
the country where the roads messaging service and a
are kept open 24/7 thanks to more specialized service
improved security and military for documents and smaller
presence. “Between 2002 and packages.”
2005, vehicle traffic increased Further improvements in
by nearly 250 per cent,” says transport efficiency depend
Minister of Transport Andrés very much on planned
Uriel Gallego Henao, “and we investments in infrastructure.
expect the latest figures to “Traffic volumes are expected
show even higher road usage to grow in line with GDP,” says
with more than 170 million Henao, “provided the security
vehicles passing through situation remains stable.” So
tolls.” the government’s focus has
It is impossible to now shifted to reducing traffic
underestimate the impact this accidents and upgrading the
change has had on the ground road network.
transport industry. Overnight Considerable new
delivery is once more an funding is already being
affordable possibility. Larger channeled into improving the
loads can be carried when country’s road infrastructure.
road usage is low, there- “The government recently SAFER: Better security has Photo: Tannaz Etebarian
by alleviating congestion. approved 12 concessions on drastically cut transportation costs.
Operating costs are reduced two-lane highways,” says
by fewer losses and lower Henao, “which are going troubled national airline. “We Miami and regional airports
insurance premiums. through the bidding process. have recuperated strongly like Cali, Cartagena, and
Leading delivery com- And the national government since leaving Chapter 11 in Barranquilla.”
panies like Transportadora is in talks with the big December 2004,” says its Having bounced back
Comercial Colombia (TCC) multilateral development president, Fabio Villegas, from near-bankruptcy, Avi-
have used the opportunity banks to raise US$1 billion of “since when we have had a anca now aims to leverage
to build a fleet of vehicles credits for the improvement 20 per cent growth. We have Colombia’s growing economic
and a portfolio of services, of regional roads.” Another expanded our fleet from 42 role to establish itself as a
comparable to the US government agency, INVIAS to 52 planes, and are once global leader. “Modernizing
service providers who have (National Institute of again operating routes to Los our fleet will provide
become global household Roadways), is offering further Angeles and Barcelona, which substantial cost savings in
names. Indeed, they provide concessions to attract outside had been stopped, and we fuel and maintenance,” says
international services aimed at investment. are adding new regional and Villegas, “and we are gain-
Colombians in the US wishing The expansion and intercontinental routes. ing competitiveness through
to send packages home, upgrade of the main in- “We are looking to further improving our service
securely and promptly. ternational airport, El Dorado, growth of volumes to Europe patterns.” If that momentum
“We have an alliance is to be completed over the and especially to the United is kept up, Avianca may
with DHL for our worldwide next four years and will be States following the FTA,” he just fulfill its goal of being
delivery service,” says TCC’s crucial to the revived fortunes adds, “which is why we now the “leading Latin American
General Manager, Gustavo of Avianca, the previously have direct flights between airline by 2010.”
Page 6
Cartagena’s
Old Charm
Wins New
Admirers
Cartagena ranks its previously shabby state
amongst the oldest into the successful, world-
seaports in the class facility it is today.
Americas. The modern port of
Cartagena has grown to
Founded in 1533 by become the country’s largest
Pedro de Heredia, ‘The container terminal, operating
Pearl of the Indies’ quickly to the highest international
became one of the busiest standards. It is also highly
ports in the Caribbean. As profitable. And Captain
the departure point for the Salas has set his sights on
gold and silver the Spanish Cartagena becoming “the
had plundered from the rest number one port in the
of the continent, the city Caribbean area, offering
repeatedly suffered from competitive advantages in
pirate attacks – against which both cost terms and levels of
the Spaniards constructed a cargo service.” HISTORIC CHARM: Cartagena has become one of the Caribbean’s top cruise destinations. Photo: Port of Cartagena
ring of defensive forts and The key to achieving this,
walls around the town and he says, is “connectivity”
harbor. These survive to – ensuring that all the new refineries and factories.” are that the coming years “The main reason Cartagena and other
this day, along with many elements necessary for a Volumes of container will provide even better that they stayed away,” destinations they usually
beautiful colonial churches, major transportation hub traffic through the port are opportunities.” says Captain Salas, visit in the Caribbean.
palaces, and town houses, to work smoothly are in likely to be boosted further While container shipments “was a bad perception of Because we are not just
making Cartagena a cul- place and mesh together. by the Free Trade Agreement and cargo provide the bulk the city, especially the beaches and shopp-
tural tourism destination “This is not just my input,” (FTA) between Colombia and of Puerto de Cartagena’s personal security of their ing areas, we are more
without comparison in the he insists, “but stems from the United States. Besides revenues, Captain Salas is passengers. But now we than that. We offer
Caribbean. the quality and attitude of which, Captain Salas argues, particularly keen to revive have shown them nothing culture, architecture,
But when Captain all the people involved. “The Colombian economy is cruise ship arrivals and the of that kind is happening in history – a very different
Alfonso Salas first went That teamwork is what is growing as never before, associated benefits in terms Cartagena. We’ve had zero offering from most other
there with the Navy in 1957, bringing in the results.” the demand for its products of tourism. “Over the winter incidents with our cruise destinations.”
Cartagena’s glory days Nor is Captain Salas such as coal and natural season of 1998-99,” he passengers for a long time So different, says
seemed to have been lost content to rest on his laurels. gas are increasing, and recalls, “up to 160 cruise and last year we hosted the Captain Salas, that:
forever. As a port it no longer A new terminal is about to the country holds strategic ships visited Cartagena.” But Platinum Event of the FCCA “When passengers first
counted for much, and the be completed, and by 2015 importance as a firm then, primarily because of (Florida-Caribbean Cruise arrive in Cartagena
city’s fabric was crumbling. another container terminal, ally of the United States security scares, the numbers Association), so they could they do not know what
Yet, since he returned 14 CONTECARG, will have in the Caribbean region fell rapidly. Now, some of the see for themselves that to expect. But when
years ago to work with the risen alongside Cartagena – all these point to further major players like the Royal everything is safe. they leave, they often
private-sector port operator, Bay. “Most of the major growth. If you look at any Caribbean, Princess, and “Also, by experiencing say they want to come
Sociedad Portuaria Regional investment will be taking of the indicators – macro- Crystal cruise lines are calling the beautiful architecture back again because it
De Cartagena, Captain Salas place over the next two to economic, performance at Cartagena once more, and culture in person, they is so beautiful and they
has been responsible for three years,” he explains, on security, business the number of vessels soon realize that there is a have had such a good
transforming the port from “including the construction of confidence – the signs doubling every year. great difference between experience.”
PORTS be increased to demand. technology upgrades. “We are
“The main new in- the only port in Colombia,”
*PORTS, FROM FRONT PAGE
vestments,” says Captain says Ceballos, “with a unique
Salas, “are going to happen refrigeration storeroom for
Nonetheless, the Co- within the next three to fruits and other products
lombian government is five years. There are huge requiring precise temperature
seeking a rapid expansion opportunities, whether and environment control. In
and upgrade of existing port they be in new refineries, fact, we are the only one on
facilities in preparation for petrochemicals, factories, the Pacific coast apart from
the anticipated increase in hotels, or tourist activities.” Chile.”
volumes of cargo passing Further along the Ca- In order to reduce the
through the country’s ports ribbean coastline, the port time ships need to spend in
as a result of the Free Trade of Santa Marta specializes in port, a COSMOS system has
Agreement (FTA) with the the export of coal while that been installed to facilitate
United States. of Barranquilla deals mainly logistics management and
“In order to fast-track in agricultural produce. Here automate systems to address
these improvements,” says again, major improvements congestion problems, while
the Minister of Transportation, are being made to the at the same time allowing
Andrés Uriel Gallego Henao, navigability of the Magdalena more thorough cargo
“concessions to operate the River, including enlarging the inspection. On the crucial
country’s five public ports main channel by dredging issue of port security there
lasting until 2013 are being and raising the height of has been support from the
revised, so that further the Pumarejo Bridge so that US embassy. A key element
investments can be made. larger ships can pass beneath of this is CISE, a high-
We are currently working it. tech security-monitoring
with private-sector operators The main port on the network that protects
to establish what levels of Pacific coast is Buenaventura, cargo and helps in the fight
investment are necessary, which handles a broad range against narco-trafficking.
and what time extensions of merchandise including “We have a good budget
to their grants are needed bulk cargoes such as grain, for further investment
for them to recover their oil, and other liquids. “Our in technology this year,”
investments.” business increased by 13 per says Ceballos, “and will
The driving force cent last year,” says Nancy be buying more cranes to
behind this commercial Ceballos, General Manager of increase capacity.” But in
reorganization of Colombia’s Sociedad Portuaria Regional Buenaventura, modernization
main seaports is the urgent de Buenaventura, the private- and social responsibility go
need to expand capacity. sector company that manages hand in hand. The port’s
“In terms of port loading the port’s operations. The long history means that it
we are already growing at facility handles almost half of is an integral part of the
26 per cent,” says Henao, Colombia’s foreign trade, and lives of the people of the
“so we need to expand our the society is now exporting Buenaventura peninsula, and
capabilities.” its know-how to countries the Sociedad claims to invest
Henao accepts that like Costa Rica, where it has between 2 and 3 per cent of
Colombia’s existing current acquired the Caldera port. its revenues in community
transport infrastructure is The port of Buenaventura projects such as the provision
likely to be stretched following has recently invested in of education and housing.
ratification of the FTA, though
he is confident that the area
most easy to improve is the
port services: “I believe that
if the government and private
sector join forces we could
very quickly be prepared for
the growth in international
commerce.”
There is a sound platform
on which to build, with three
major ports serving the
Atlantic and one on the Pacific
coast. Of these, Cartagena is
probably the most important,
being the largest and most
modern container terminal
in the region. With one new
terminal about to be finished
and another, state-of-the-art
container terminal planned for
opening in 2015, the General
Manager of Cartagena Port,
Captain Alfonso Salas, is
confident that capacity can
Page 7
Connecting
Colombia to
the World
There is fierce Móvil with around 9 per throughout the country.
competition for this cent. Last year, Milicom Meanwhile, Telecom
market in Colombia. International became has moved beyond its old
the majority shareholder monopoly of pan-national
C o l o m b i a ’ s and strategic partner in and international fixed line
telecommunications Colombia Móvil, alongside to enter the Bogotá market,
industry has undergone minority partners ETB and is currently building
major restructuring in and Empresas Públicas de a broadband platform to
recent years following the Medellín. serve not just the capital
opening of the domestic Orduz thinks the and major cities like Cali but
markets and the entry number of subscribers will more than 37 municipalities
of global players like continue growing through to across the country.
Telefónica and Milicom 2008. However, competition Penetration of broad-
International into the arena for new subscribers is so band Internet is still
– though to date these intense that sophisticated comparatively low, but it is
multinationals have been handsets are made available rising fast. Orduz estimates
involved mainly through at heavily subsidized prices the total Colombian
joint ventures with leading just weeks after they are market at 400,000 users,
Colombian operators released in the United adding, “This is not a
such as ETB (Empresa de States. And now the lot, and the success of
Telecomunicaciones de competition is moving on new IP products depends
Bogotá) and Telecom. to VOIP (Voice Over IP) and very much on achiev-
However, despite other products are coming ing higher penetration.”
the relatively recent li- online. ETB has a program for
beralization, the mobile It is remarkable how extending Internet access
telephony market is already the old monopoly-holders to some of the poorest
close to saturation point are adapting to this new neighborhoods in Bogotá
in the main population environment. ETB used through local centers with
centers. Official figures for to have the monopoly 20-30 computers, each with
cellphone use suggest there of fixed-line telephony links into schools so that
are 29 million subscribers, within the Bogotá region; students can use them. But
though as Rafael Orduz, it still holds pole position already things are moving
president of ETB, points in the capital and has beyond broadband with the
out, “The actual market size introduced the lowest flat big Colombian operators
is nearer 21 million because fees for unlimited use in assessing new formats,
the principal format is pre- the Colombian market. such as WiMAX, which are
paid and a lot of people Nowadays ETB is expected to replace it.
do not recharge their also competing long dis- “What is going to
cards for months on end.” tance and offers pre- happen next in Colombia
There is fierce com- paid cards in the United is what’s happening right
petition for this market States, Panama and Spain now in Europe,” says
between the three big targeted at Colombians Orduz, “namely fixed-
players: Comcel with living abroad. But it has mobile convergence.
around 65 per cent share, also developed a complete ETB and its partners in
Movistar (involving Spain’s range of services beyond Colombia Móvil all have
Telefónica and Colombia its fixed-line heritage, fixed-line capability, so
Telecomunicaciones) with becoming the leading ISP convergence should be
26 per cent, and Colombia (Internet Service Provider) possible within two years.”
An Abundance of Natural Resources
Colombia is blessed with a For one thing, the state- would lose its self-sufficiency in León Teicher, describes as “the of our exports will be to the US over ensure that all newly imported
variety of natural resources. owned Ecopetrol, which used energy by 2008. But by bringing world’s largest pit-coal mine the next five years.” cars can run on 20 per cent
When Colombia’s own to take a 50 per cent cut of international investors back devoted to exports. About 60 per Natural gas is growing bio-diesel or alcohol-based mix
Minister of Mines and Energy, other companies’ oil discoveries, and licensing more exploration cent of our coal goes to Europe, fast in Colombia, with domestic by 2012. There is also a pilot
Hernán Martínez Torres, describes is no longer a partner in the blocks, Colombia has earned a mostly to Western Europe, some demand booming and exports wind farm in La Guajira where,
his country as a “hidden gem for new-style E&P contracts, reprieve until 2011. Both the to the Mediterranean and the rest to its neighboring Venezuela to according to World Bank studies,
foreign investors,” eyebrows might responsibility having been Energy Minister and President to the US and Central and South be carried down a new pipeline there is potential for generating
be raised among hard-bitten transferred to the Agencia are confident that more is yet America.” currently under construction. The 20,000 MW, and plans are for
oilmen and other skeptics. But Nacional de Hidrocarburos. More to come. According to some Cerrejón also runs its electricity industry is consolidating alternative energy to supply
much has changed in Colombia, favorable terms have brought the estimates, the Tayrona field in own railroad and port, thereby fast, with players like EEB (Empresa between 2.5 and 3 per cent of
both in the internal security international companies back. the north alone has the potential providing very high reliability for de Energía de Bogotá) now active total demand.
situation and the availability of “This is why we will be drilling to reverse Colombia’s loss of self- its customers who are mainly not only in power generation, But despite these moves
stable, long-term exploration and 50 new wells this year,” says sufficiency in petroleum. electricity generators in North transmission, and local distribution, towards alternative energy
production (E&P) contracts. So Torres, adding that “contractual Colombia is blessed with a America and Europe. “Last year, but also in natural gas. sources, “dependency on pe-
much so that William Drennan of terms will not change because variety of natural resources and we exported 27.5 million tonnes, Away from the traditional troleum is still very high,” says
ExxonMobil was recently quoted we need further investment and is also a major coal producer. or nearly 10 per cent of the entire energy industries, Colombia is Torres, “which is why further
as saying that “Colombia now exploration.” Carbones del Cerrejón is a Atlantic coal market,” says Teicher. also moving towards developing investment in both hydrocarbon
offers among the best fiscal terms That need was fueled by major force in the local market “Our exports to the US are growing alternative fuels like ethanol exploration and alternative
in the world.” the expectation that Colombia operating what its president, and I expect about 30-40 per cent and bio-diesel, the plan being to energies is essential.”
Page 8
Atlántico, a Great Exporting Platform in
the Caribbean Region
geographic location pro- weighing one kilogram significant tax benefits electricity, natural gas
vides easy access to carried from the port for companies exceed- and telecommunications
markets such as Europe, of Shanghai to Miami ing US$30 million or (it is the main cen-
Southern, Central, and costs US$2.99, carrying creating at least 600 job ter for optical fiber
North America, and also it from Barranqui- opportunities. telecommunications).
Colombia’s domestic lla, Colombia, costs Atlántico offers as As for education, in
market, turning Atlántico US$0.84. And shipping an exclusive advantage Atlántico there are 26
into the best trade it by sea is even more a 100-kilometer bank universities, both public
corner of Colombia. convenient: shipping near the mouth of the and private.
Atlántico is naturally a 1 kg package from Magdalena River. Between Also in the area’s
and strongly inclined to Shanghai to the US costs the municipalities of favor is the fact that
exports, supported by US$0.31, while shipping Malambo and Sabana it is free from the
a logistics and services it from Barranquilla Grande, 1,400 hectares hurricanes that strongly
infrastructure. costs US$0.01. Moreover, have been assigned to affect certain regions
The proper location delivery deadlines industrial development, of Central America and
of products for ex- for freights from the with significant tax the Caribbean, and has
port, logistics, and department of Atlán- incentives. This area the greatest earthquake
freight charges are de- tico are substantially is ideal for export stability in Latin
termining factors for reduced from 28 days production: located on America.
competitiveness, even to 3.5 days, favoring the banks of the river, Due to the current
more relevant for export competitiveness. 30 kilometers away from location, land availabi-
success than the duties Barranquilla is an the sea, with land for lity, water, goods and
themselves. That is the industrial, harbor, and sale by the hectare at services infrastructure,
reason why coastal areas special district. The low prices. and ability to change,
are particularly appealing port is managed by In two months’ time, Atlántico is the ideal
to exporters. China, the Sociedad Portuaria the building process for place for agricultural and
an obvious country to
mention with regard to
foreign exports, performs
“The port will include a multipurpose quay, as
80 per cent of its export
activity in six coastal
well as industrial and manufacturing areas. There
provinces: Guangdong,
Jiangsu, Shanghai,
will be another four new ports nearby.”
LOCATION: Map of Atlántico, Colombia. Zheijiang, Shandong,
and Fujian. The US Regional de Barranquilla the International Duty- livestock activities and/or
Due to the current location, land availability, market is particularly (SPRB) and a significant Free Zone in Atlántico agribusiness, particularly
water, goods and services infrastructure, and significant since in 2005 number of foreign trade will begin along the fruit, vegetables, root
ability to change, Atlántico is the ideal place for imports amounted to operations are performed whole 120 hectares vegetables, meat, dairy
agricultural and livestock activities. US$1,900 trillion. within the premises. located 2 kilometers products, aquiculture,
As for China, Atlántico Many industries grow from Barranquilla’s and fishing. The de-
Bordering the Atlan- Colombia, the Atlántico offers great advantages between the mouth of the beltway, near the port partment has been
tic Ocean and located Department acts as a in freight charges so as to Magdalena River and the infrastructure. Such certified by international
at the mouth of the seaport as well as a river gain access to the North freight terminal. Atlántico location allows an easy agencies as a region free
Magdalena River, the port, an airport, and a American market. While displays a continu- land communication with from foot-and-mouth
most significant in teleport. The privileged an average air freight ous port development, the Caribbean Region disease and the premises
as evidenced by the and other departments of the most important
deepwater port that will in the country. Special meat-processing plant in
Geography is our Strength:
be located at the end laws covering promotion the country are located
of the left bank of the of international trade within its region, half
Magdalena River, where it are in force and 25,000 an hour away from the
Governor Carlos Rodado Noriega
flows into the Caribbean job opportunities will port. The stockbreeding
Sea. The port will include be offered. Moreover, industry is prepared to
a multipurpose quay, as five industrial parks are take advantage of the
well as industrial and being developed. Free Trade Agreement
An interview with the manufacturing areas. Among the most (FTA) with the United
Governor of Atlántico, There will be another dynamic production States. Through the
Carlos Rodado Noriega. four new ports nearby. sectors in the department wood-processing plants
Q: Governor, why do The Duty-Free Zone are beverages and and with more than
you think Atlántico is a in Barranquilla is an tobacco, garment and 30 years’ experience
good choice for capital industrial park located footwear, wood and of sowing timber
investment? in an excellent position. paper, chemicals, goods products, progress can
Carlos Rodado Noriega: Developed next to the for construction, ca- be seen towards the
Geography is our biggest Sociedad Portuaria pital goods, carriage, establishment of a
strength. Being located on Regional de Barranquilla and craftwork. Service 15,000-hectare forest
the furthest northeast point in a one million square groups include tele- center during the next
of the Caribbean coast of meter area for the communications, health, five years.
Colombia grants Atlántico purpose of establishing tourism, carriage and With the sea and
a strategic and privileged industrial, trade, or logistics, financial ser- 20,000 hectares of river,
position, very close to services companies, vices, as well as services lakes, water reserves,
the busiest trade routes this zone is naturally for construction and and the first station for
worldwide. Atlántico is the inclined to exports and public works. 10 per fish-farming research in
region in Southern America therefore is ruled by cent of the country’s the country, Atlántico
closest to the US market, special customs, foreign manufactured goods are is destined to become
besides its direct access to exchange, and tax laws. produced in Atlántico one of the most impor-
Europe and the Caribbean Another successful – that is 50 per cent of tant growers/exporters
Region. A key aspect shall industrial development all manufactured goods of aquiculture products
be to turn a 100-kilometer in Atlántico is the from the Caribbean within the region. The
area all along the banks Parque Industrial de Region. outlook is also good
of the Magdalena River Malambo S.A. (PIMSA), Atlántico offers for the tilapia and
into an industrial corridor which has a port 56 the appropriate infra- shrimp industries due
for those products to feet deep. In order to structure for the to the performance,
be exported. That area reactivate the export provision of public service t r a n s p o r t a t i o n ,
includes Barranquilla and sectors, national policies utilities: potable water possibilities for new
ten additional municipalities set forth legal rules in urban areas, water areas of water surface to
in the eastern area of encouraging investment, for economic develop- be added and adequate
Atlántico and borders the such as acknowledging ment in the country, phytosanitary measures.
Caribbean Sea and the
Magdalena River.
Q: The main POSITIVE: Governor of Atlántico, Carlos Rodado Noriega
characteristic of the
Caribbean Region is Q: What kinds of appealing aspects for investors
tourism. What are the measures have been in the region is the FTA.
main tourism features in taken in advance? Barranquilla is greatly focused
Atlántico? C.R.N.: We traveled towards exports. Since it is a
C.R.N.: There are to China because we department naturally inclined
beautiful beaches all along believe that companies in towards exports, Atlántico
90 kilometers by the that country may obtain has skilled human resources.
Caribbean Sea, good resorts advantages by establishing We invest in education,
that are being turned into here in order to manufacture granting a major significance
very interesting tourism and export to the US, since to computing science and the
centers. Another feature is it is less expensive to export English language. The best
business tourism, attracting from here than doing it way to compete with Asia is
millions of executives. from China. We offer legal innovation. The international
Some companies in the security, stable rules for competitors in a globalized
private sector such as the investment and specific market are tough and being
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